Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Avoid Roth IRA penalties with one rule.

11 Aug 2025 · 1 min

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Craig Wear, CFP, explains the five-year rule that lets you withdraw Roth IRA earnings tax-free. Contributions come out anytime penalty-free. If you're 59½ or older, converted amounts avoid penalties entirely, making conversions a smart move for older investors.

Questions this video answers

Five years.

59½ years old.

Yes—contributions can be withdrawn anytime without penalty.

Yes—each conversion has its own five-year clock.

Yes—the same rule applies to inherited Roth IRAs.

Chapters

Avoid Roth IRA penalties with this one rule. So to withdraw earnings tax free your Roth IRA has to be open for at least five years and you best be 59 and a half or older. You can take out your contributions anytime you want to without any penalty or anything. And if you convert from a traditional IRA that conversion also has its own five year clock. The same rule applies to inherited Roth IRAs as well. But look don't get penalized, know what the timelines are before you withdraw. And don't be confused because there are actually two different five year rules. I've just gone through the one that applies to a lot of people but for folks that are already 59 and a half years old you can withdraw 100% of the amount that you convert to a Roth IRA with absolutely no penalty and no taxes. So check into those rules as well because if you're over 59 and a half it's a great way to really begin doing some massive Roth conversions.